On Could 6, 2022, the events to a federal lawsuit difficult Oregon’s “love letters” statute collectively submitted a consent decree with the court docket declaring the regulation a violation of the First Modification of the USA Structure and agreeing the Oregon Actual Property Company will not implement the love letters ban.
Enacted in September of 2021 with the particular goal of avoiding sellers deciding on patrons based mostly on a prohibited bases in violation of truthful housing legal guidelines, the statute requires sellers’ brokers to reject any communications from patrons aside from “customary paperwork” of an actual property transaction.
In November of 2021, an actual property agency sued the Oregon Actual Property Commissioner and Lawyer Common and moved for a preliminary injunction towards the regulation’s enforcement. The go well with alleged an unconstitutional restriction of the First Modification freedom of speech rights of Plaintiff and its actual property brokers and purchasers.
Issuing the preliminary injunction, the District Court docket discovered Plaintiff possessed direct Article III standing to problem the statute and third-party standing on behalf of its brokers’ purchasers. The court docket then analyzed whether or not the statute’s restrictions towards purchaser love letters impermissibly violated Plaintiff’s brokers and purchasers’ First Modification rights.
To find that each the brokers’ and their purchasers’ First Modification protections have been burdened, the court docket emphasised how the statute restricted patrons’ speech immediately, restricted brokers from drafting supply cowl letters, restricted brokers from helping purchasers in drafting letters, and famous the closeness of the agent-client relationship. For all these causes, the court docket discovered that the Plaintiff had direct standing and third-party standing to deliver the declare on behalf of its purchasers.
The court docket then analyzed whether or not the statute impermissibly restricted industrial speech utilizing the Supreme Court docket’s Central Hudson check for intermediate scrutiny. Defendants highlighted how love letters perpetuate systemic problems with implicit bias and racial disparities in homeownership.
Whereas the court docket acknowledged there was proof to assist the declare that banning love letters could scale back illegal discrimination, the court docket in the end concluded that the love letters ban is just not adequately tailor-made to reaching its anti-discriminatory functions and due to this fact impermissibly violates the First Modification. Referencing a number of viable options to addressing housing discrimination and the “vital quantity” of affection letter content material unrelated to private traits, the court docket concluded the statute is over inclusive and restrictive of extra non-problematic speech than essential.
And whereas the settlement decree will finish Oregon’s prohibition of affection letters, legislators in different states have not too long ago launched comparable statutes. A invoice launched to Rhode Island’s Common Meeting is at the moment being held for research, and Washington’s State Legislature indicated plans to doubtlessly re-introduce a stalled invoice sooner or later.